4 Strategies for Avoiding Car Finance Pitfalls

  • Posted 12 Nov

4 Strategies for Avoiding Car Finance Pitfalls

If you’re in the market for a new car, one of the first things you’ll be looking at is how much you can afford to borrow to finance your car purchase.

And while most people won’t face any issues with financing their car, there are some car finance pitfalls that you should be aware of, just to be on the safe side, particularly if you don’t want to delay the purchase of your car.

Here’s how to avoid some of the most common car finance pitfalls:


#1: Your Credit Score


This is probably the most important aspect in applying for a car loan. Your credit score is very important and will pay a huge role in whether you can get access to finance and what interest rate you’ll be charged.

If your credit score has taken a few hits lately, then you need to be aware that you may not get the best car loan deal. You can find out what your credit score is by visiting www.veda.com.au and entering your details.

Once you know your credit score, then you’re better informed about what options are available to you. If your score is low, chat to our team at Australian Credit and Finance, as we can still help you find flexible finance terms.


#2: Make a List


To avoid spending more than you’d planned, understand what your budget is and exactly what it is you’re looking for in your new car.

Make a list of the must-have’s and the nice-to-have’s and then prioritise them. This will help to ensure that you don’t overspend and also highlights exactly what you need so you can avoid making the wrong decision in your next car purchase.

The more your borrow, the higher your monthly repayments will be, so stick to your budget and your list to ensure you don’t overspend.


#3: Research


Take some time and research current interest rates on car loans. This will make you better informed when negotiating your finance terms.

Research the price range for the features you’ve decided you need so that when you’re looking at cars, you know what the going rate is.

Find out if there are any rebates or special offers available for car models you’re looking at. The time of year can also play a big part on deals available, so shop around first.


#4: Read Before You Sign


This is simply common sense, but it is something a lot of people forget to do, trusting that the finance company won’t take them for a ride.

Never sign the purchase contract and car finance terms without thoroughly reading through the contract. Question anything that doesn’t sound right and look for extra charges and fees that haven’t been mentioned upfront.

Don’t be pressured into signing there and then. If you’re not happy or you’re getting a weird vibe, ask for 24 hours to review the contract, or simply walk away if you start to feel pressured. You’re the buyer, you have the ultimate say in what car you buy, remember that!

Let the team at Australian Credit and Finance take care of the car buying process from start to finish. Our car buying experts will find you the right car at the right price, even getting the car delivered straight to your door. Get in touch with us today to find out more.

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